College Loans and Income

[AUChE]

My income teeters on the edge of being too much to qualify my child for grants/scholorships/aid for college. She will be a senior in HS this fall. Other than finding a new job that pays less, is there anything I can do this year to help her qualify for some tuition help?

[JotikaT2]

While the qualifications for obtaining grants or scholarships will depend upon the school selected and financial aid offered, you might want to see if you qualify for an education credit on your tax return.

There are two main education credits available, the American Opportunity Tax Credit and the Lifetime Learning Credit.  Both credits do have income requirements that you must fit within to qualify but depending upon your filing status, you may still qualify for.  Since your teen will just be starting college, she will most likely utilize the American Opportunity Credit which provides up to a $2,500 credit on your tax return for the first 4 years of college when working to get a degree, as well as possibly being refundable up to a maximum of $1,000.  

Please see this link for more details on these education credits.  

Also, it is important to note education credits are a dollar for dollar reduction in your taxes due so it can make a real difference when you file your tax return.